Why is Blackrock buying every single family house they can find, paying 20-50% above asking price?

Discussion in 'Economics' started by Ninja Mobile Trader VPS, Jun 9, 2021.

  1. maxinger

    maxinger

    buy high.

    sell even higher.
     
    #21     Jun 9, 2021
  2. kmiklas

    kmiklas

    Yes the Fed learned that lesson in the repo markets in 2019.
    https://ig.ft.com/repo-rate/

    Perhaps this is why they're increasing reverse repos, which recently have amounted to about USD500B. Maybe this is a way to test and see what happens with short-term liquidity removal.
    https://www.reuters.com/article/us-usa-fed-reverse-repo-idUSKCN2DL29J
     
    #22     Jun 9, 2021
  3. Arnie

    Arnie

    IMO, inflation will get out of hand when we cross the line from cost push, to demand pull. The latter happens when we see wages rising.
     
    #23     Jun 10, 2021
  4. Hells to the Y-E-S. I know several people that I care about that are invested in 'safe' bonds and holding USD/Euro.
    Safety is OVER for that shit. 5-4-3-2-1, NOW.
     
    #24     Jun 12, 2021
  5. Volatility is a comin'.
     
    #25     Jun 12, 2021
  6. Jad930

    Jad930

    As a bond trader for 25 years and a residential real estate investor for 25 years, I believe Blackrock is only looking at the current cap rate of 8% to 10% for decent A and AA properties. The cash flow will continue but depreciation is almost certain as rates rise.
    In the long run, real estate will outperform all other asset classes as inflation rears its ugly head. People have to have a place to live but can sacrifice on clothes, food, and cars for a while.
     
    #26     Jun 12, 2021
  7. birdman

    birdman

    #27     Jun 12, 2021
  8. Create money out of thin air, then proceed to buy up hard assets. I think everyone should have a problem with this.
     
    #28     Jun 12, 2021
  9. RGLD

    RGLD

    I think the news is a pretty good indicator it's slowing down. Everything is priced in than the stupid media starts feeding you their stale garbage. Sure there's more inflation down the road, but atleast for now, I feel we're gonna get a small rally in the dollar. When your FB starts recommending you "inflation hedges", you know the trend's slowed down or is probably over.
     
    #29     Jun 12, 2021
  10. Handle123

    Handle123

    Thank goodness I am older and have gone through enough cycles, with the exception of a full blown depression which we are long overdue, history repeats itself. And as traders or long term investors, great time NOW to read and learn of USA cycles of inflations and find best places to move funds and learn how to hedge.
    There are reasons why most people are sinking in life and very few at the top.
     
    #30     Jun 12, 2021
    Centuria100 and VPhantom like this.